Regulating Credit in Australia
Part of the Test For Dummies Cheat Sheet
National legislation regulating the way in which credit is provided to private individuals in Australia was regulated in 2009. Key points of this legislation are as follows:
The Australian Securities and Investment Commission (ASIC) is responsible for the administration and enforcement of the consumer credit legislation. The state and territory consumer agencies have a supporting role.
All lenders, entities and persons providing assistance for consumer credit dealings (such as mortgage brokers and commercial debt payment assistance firms) must have a licence from ASIC.
All licensees are required to adopt responsible lending practices. They must check that you have the financial ability to meet your obligation to pay a debt such as a mortgage.
Licensees must establish an in-house informal dispute resolution process to handle consumer complaints or queries, and must also belong to an informal external mediation service.